Leeds cash-flow fears over Radrizzani’s business woes
Leeds United owner Andrea Radrizzani’s company, Eleven Sports UK, is at risk of closure in a development which could have ramifications for the Championship club.
Radrizzani’s sports streaming service is in danger of shutting down after only four months, amid growing doubts over the financial viability of the company.
The Italian businessman is understood to have sought guarantees from insurers over financial assistance should the club remain in the Championship next season.
It is believed that Radrizzani has been unsuccessfully attempting to renegotiate deals with established pay-tv operators, but Eleven Sports has considered the prospect of pulling the plug on its UK company.
It is claimed he owes up to £30million in rights fees to clients including mixed martial arts brand UFC, Serie A, La Liga and the Eredivisie. The Daily Telegraph understands there could now be added pressure on Leeds to achieve promotion this season because of fears over cash-flow issues.
Sources have said Radrizzani is in talks to restructure the UK company, and Leeds insisted yesterday that it was business as usual. The club, under manager Marcelo Bielsa, are second in the Championship, a point behind Norwich.
Radrizzani completed his full takeover of Leeds in May last year, replacing Massimo Cellino, and was believed to be one of the main agitators against the English Football League’s £595million TV deal with Sky.
The EFL agreed a controversial five-year contract with Sky which left several clubs, including Leeds, Derby and Aston Villa, “gravely concerned”. Sky’s new terms represent a 35 per cent increase on the current arrangement, and the broadcasting giant will continue to show EFL games (including playoffs), Carabao Cup and the Checkatrade Trophy until May 2024. Radrizzani and representatives from other Championship clubs held a meeting in London last month in a bid to challenge the deal.
The crisis over Eleven Sports UK is likely to be Radrizzani’s main focus now, and official confirmation of its plans are expected in the next few days.
An Eleven Sports spokesman said: “Without carriage agreements with the existing platforms, alongside the challenges posed by rampant piracy, the current market dynamics in the UK and Ireland are very hostile for new entrants.
“We are in discussions with our rights partners, La Liga and IMG, about how we can restructure our existing agreements in order to continue our current OTT [streaming] service.”
Meanwhile, Leeds’ opponents on Saturday, Bolton Wanderers, appear to be on the verge of resolving their wages crisis.
Players at the troubled club have been promised they will be paid tomorrow after a personal pledge from chairman Ken Anderson. The delayed wages were originally scheduled for Nov 30.